Which of the Following Statements Describes the Company Characteristic of Transferability

Multiple Choice

Which of the following statements describes the company characteristic of transferability of company ownership?

A) The liabilities of the company cannot be extended to the personal assets of the shareholder.
B) Shares can be readily bought and sold by investors on the open market.
C) Companies pay income tax on company earnings, and shareholders pay personal income tax on company dividends and gains from sale of shares.
D) Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.